term-sheet-review
$ npx skills add https://github.com/vcskills/term-sheet-reviewTerm Sheet Review
Parse and flag key terms in term sheets, SAFEs, and convertible notes — surfacing non-standard provisions and economic implications.
Quick Start
Use this skill when:
- You have received a term sheet and need a quick read before the response deadline
- You are negotiating a SAFE and want to model the economic impact of different caps
- You want to compare terms across competing offers from multiple investors
- Your legal counsel has returned a markup and you need to understand the delta
- You are on the receiving end of a term sheet as a founder and need plain-English translation
How It Works
Paste or upload the term sheet document. Term Sheet Review parses the full text and extracts every defined term, organizing them into economic terms (valuation, liquidation preference, anti-dilution), governance terms (board composition, voting rights, protective provisions), and operational terms (information rights, right of first refusal, drag-along).
Each extracted term is matched against a database of market-standard definitions. Terms that fall outside normal ranges — a 3x participating liquidation preference, for example — are flagged with a plain-English explanation of why they are non-standard and what they mean for the founder and existing investors.
Economic Modeling
For the key economic terms, Term Sheet Review builds a waterfall model showing how proceeds would be distributed under three exit scenarios: 1x return, 3x return, and 10x return. The model shows what each class of stockholder receives under each scenario.
This makes the real economic impact of provisions like participating preferred or weighted-average anti-dilution immediately visible without requiring a separate cap table tool.
Redline Summary
The final output is a one-page redline summary: the 5 most consequential provisions, ranked by economic or governance impact, with a recommended negotiating position for each. This is designed to be shared with the founder or co-investor directly as a starting point for negotiation.